FORT WALTON BEACH — For the fifth consecutive year, the city faces declining revenues and rising costs as it approaches its annual budget deliberations.
The City Council will get its first look at the proposed 2013-14 budget Tuesday.
Although property tax revenues are projected to remain steady for the first time in several years, franchise fee and gas tax revenues are projected to drop while medical costs, utilities and fuel are up, City Manager Michael Beedie said.
“Based on the City Council’s Strategic Planning Session in April 2013, the goal of the city is to develop a sustainable budget,” he said.
That means budgeting for basic, essential expenses, many of which have been deferred in recent years.
View more information about the budget.
To meet those costs, Beedie is proposing a property tax increase.
“In years past, both City Council (members) and citizens have expressed a dedication to not eliminate or reduce any services the city provides,” he said. “In order to accomplish this, an increase is required.”
The city’s current property tax rate is 4.53 mills, or $4.53 for every $1,000 of taxable property value. The city has not increased its millage since 2010.
Beedie and his staff are proposing a cap of 6 mills.
The City Council on Tuesday is scheduled to set a tentative millage rate. The council will vote on the final millage rate — which cannot exceed the approved cap but can be less — when it adopts the budget in September.
The new budget year begins Oct. 1.
Property tax revenue accounts for about 25 percent of the city’s general fund budget.
Beedie said the proposed millage increase, which he will outline in more detail Tuesday night, would cover only “the necessary items to continue to provide the current services.”
The city has absorbed numerous minor cuts during the past four to five years without eliminating overall services.
“However, there are no minor cuts left, and any additional cuts would result in a reduction or elimination of services,” Beedie said.
The bulk of those essential expenses are in the police and fire departments.
“They’re very critical,” he said.
Beedie said it’s “imperative that the city re-implement” the replacement of vehicles, information technology equipment and facilities repair and maintenance programs that have been suspended for the past four to five years.
He said the repeated cuts also have made it hard to keep good workers.
“The private sector is coming back, and we’re starting to lose employees,” he said. “We recently lost seven employees in one week, and the main reasons they’re giving us are wages and benefits.”
Beedie urged residents to attend Tuesday’s meeting at 5:30 p.m. at City Hall to get a comprehensive view of the proposed budget.
WANT TO ATTEND?
The Fort Walton Beach City Council will meet at 5:30 p.m. Tuesday at City Hall.
Contact Daily News Staff Writer Kari C. Barlow at 850-315-4438 or kbarlow@nwfdailynews.com. Follow her on Twitter @KariBnwfdn.